Joann Fabrics bankruptcy and liquidation rich with dates, operational context, community impact, and closure details:
1. Company Background & First Bankruptcy
- Founded in 1943 in Cleveland, Joann grew into a national arts‑and‑crafts retailer, expanding to around 800 stores across 49 U.S. states.(Wikipedia)
- After a pandemic boost, Joann faced declining post‑COVID sales and rising costs. In March 2024, the chain filed for Chapter 11 bankruptcy, carrying about $1.2 billion in long‑term debt.(Newsweek)
- They eliminated roughly $505 million in debt, secured financing, and re‑emerged as a private entity by April 2024. All stores initially remained open.(Los Angeles Times, Bondoro)
2. Second Bankruptcy & Operational Collapse
- On January 15, 2025, Joann filed for Chapter 11 again, citing severe inventory shortages, loss of vendor support, falling consumer demand, and razor-thin liquidity (~$8.4M cash vs $615M debt).(cnbc.com)
- They owed over $133 million to suppliers and were burdened with high monthly rent (~$26M).(cnbc.com)
3. Store Closures & Liquidation Timeline
- In February 2025, Joann announced closures of 500 out of ~800 stores across major states (e.g., California, Florida, Michigan).(CNN)
- A bankruptcy auction held on February 26 awarded Joann’s assets to Great American Group (GA Group) and lenders, who opted for full liquidation rather than partial restructuring.(The Business Journals)
- Initially, liquidation sales began at many stores right away. Shops accepted gift cards until February 28, but disabled online purchases.(Reddit)
- Final closures occurred by May 30–31, 2025, completing the liquidation of all 800 stores.(Wikipedia)
4. Community & Employee Impact
- About 19,000 jobs were lost, with over 80% part-time positions.(Axios)
- GA Group pledged a retention and transition plan, including job fairs and support benefits.(Reddit)
- Reddit users expressed heartbreak, especially employees and long-time crafters who lost access to favored supplies.(Reddit)
5. Liquidation Sales & Customer Experience
- Discounts varied but often felt modest; many reported only 10–30% off, with cheaper prices poorly communicated. Coupons and returns were restricted.(Reddit)
- Scams emerged online with fake sites claiming to sell liquidation stock customers were warned not to purchase from unverified sources.(Reddit)
6. Brand Transition & Market Leadership
- On June 5, 2025, Michaels acquired Joann’s intellectual property and private-label brands (e.g., Big Twist, Loops & Threads), though not its physical stores.(Kiplinger)
- Michaels launched a dedicated portal to appeal to former Joann customers, expanded its product portfolio, and saw sharp rises in searches for fabric and sewing categories.(Kiplinger)
7. Financial & Strategic Analysis
- Joann’s debt-to-assets ratio and interest coverage were critically low; its FRISK® Score ranked at the bottom quartile among peers with high risk for continued operations.(creditriskmonitor.com)
- Post-bankruptcy inventory disruptions severely impaired sales, loyalty, and revenue recovery projections in 2024–25.(Bondoro, Los Angeles Times)
8. Summary Timeline
| Event | Date | Outcome |
| First Chapter 11 | Mar 18, 2024 | $505M debt cut; remained operational |
| Second Chapter 11 | Jan 15, 2025 | $615M debt; inventory and liquidity crisis |
| Store Closure Plan | Feb 12, 2025 | Announced closure of 500 stores |
| Auction Completion | Feb 26, 2025 | Assets sold to GA Group; full liquidation |
| Final Closures | May 30–31, 2025 | All ~800 stores shut |
| Brand IP Acquired | Jun 5, 2025 | Michaels purchased Joann’s private labels |
Final Insights
- Joann’s downfall reflects struggles of legacy retailers mounting debt, competition, supply chain instability, and failure to adapt in an e-commerce era.
- Despite a brief restructuring in early 2024, ongoing inventory losses and liquidity constraints prevented recovery.
- While Joann is gone, its brands and customer base live on through Michaels, which strategically absorbed and expanded Joann‑exclusive product lines.
- For employees, suppliers, and communities, the closure marks a poignant chapter in retail upheaval.
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